FCC Adopts Rules for Licensing and Operations in Portion of 700 MHz Band Reallocated from Television Channels 60 through 69

Washington, DC -- The Federal Communications Commission (FCC) has adopted licensing and
service rules governing operation of 30 of the 36 MHz of commercial spectrum located in the 700
MHz band that will be auctioned later this year. According to participants in this proceeding,
including numerous advanced wireless service and high technology companies, this spectrum can be
used for a variety of wireless services, including fixed and mobile Internet access. Pursuant to
Congressional direction to have the proceeds be deposited in the U.S. Treasury by the end of
September, the Commission is scheduled to conduct this auction this spring.

To further the Congressional directive that it protect nearby public safety users from interference, the
FCC also adopted "guard bands" encompassing 6 MHz of spectrum. Located adjacent to the
spectrum allocated for public safety use, this commercial spectrum would be auctioned in two paired
segments, one of 4 MHz and one of 2 MHz. Concurrent with release of this Order, the Wireless
Telecommunications Bureau will be releasing a Public Notice permitting further brief comment on
certain specific technical and operational issues regarding the two guard band licenses. Shortly after
receiving comments, the FCC will issue a second Report and Order addressing the specific licensing
and service rules for this 6 MHz of spectrum.

In the Balanced Budget Act of 1997, Congress directed the Commission to reallocate spectrum in
the 700 MHz band to commercial and public safety services from its previous exclusive use for
television broadcasting service on channels 60-69. The Act originally directed that auctions for the
36 MHz of this spectrum that were not allocated to public safety use be conducted after January 1,
2001. Legislation enacted this past November, however, accelerated the auction date by requiring
that auction proceeds be deposited in the U.S. Treasury by September 30, 2000.

The item adopted today addresses:

Band Plan for 30 MHz: The FCC established two license bands, one of 20 MHz (two paired 10
MHz bands) and one of 10 MHz (two paired 5 MHz bands) that can be used for a variety of
wireless services. These spectrum blocks can potentially be used for advanced wireless services,
such as high-speed Internet access and next generation (3G) broadband wireless services, as well
as new broadcasting services that meet the applicable technical parameters. The FCC also
decided to auction these licenses in six Economic Area Groupings (EAGs) across the country.
The FCC is permitting parties interested in acquiring both licenses in an area, to win both in the
auction, enabling the potential aggregation of up to 30 MHz of spectrum nationwide. [See
attached Diagram]

Band Plan for 6 MHz "Guard Bands": The FCC established two license bands, one of 4 MHz
(two paired 2 MHz bands) and one of 2 MHz (two paired 1 MHz bands). The FCC will
determine in a subsequent Report and Order the service rules, including technical, operational,
and licensing requirements, for these licenses. The FCC noted that the technical and operational
restraints placed on this spectrum will be more stringent than restraints placed on the 30 MHz
spectrum to ensure neighboring public safety bands are protected from interference.

CMRS Spectrum Cap: The FCC stated that 700 MHz licenses will not be subject to the
Commercial Mobile Radio Service (CMRS) spectrum cap. The Commission recently affirmed,
with some adjustments, the 45 megahertz CMRS spectrum cap, but indicated it would consider
in this proceeding whether and how the spectrum cap should apply to the 700MHz licenses. The
FCC stated that the spectrum cap for the existing 180 megahertz of CMRS spectrum provides a
sufficient safeguard against excessive consolidation of CMRS spectrum, and that refraining from
extending the cap to the 30 MHz would enable existing CMRS providers to use this spectrum
for the provision of advanced services. The encumbered nature of the spectrum at this time also
favors excluding this spectrum from the CMRS spectrum cap.

Eligibility Restrictions: The FCC did not impose any eligibility restrictions, such as restrictions on
existing service providers like incumbent local exchange carriers or cable operators.

Interference Protection: The FCC adopted standards to assure protection of the approximately
100 existing conventional television stations that are permitted to continue to operate on these
bands during the transition to digital television (DTV), and to safeguard public safety operations
on adjacent bands.

Today's action represents the FCC's first decision guided by the principles enunciated in its recent
Spectrum Reallocation Policy Statement. Based on those principles, the comments of interested
parties, and FCC review of technical issues, the FCC found that a flexible, market-based approach is
the most appropriate method for determining service rules in this band. The FCC also concluded
that in these spectrum bands, the establishment of sub-bands will best ensure that a variety of
spectrum management priorities are realized, including protection of public safety operations from
interference. Rapidly expanding demand for wireless voice and data services, as well as projections
of the increased spectrum necessary to support broadband applications to be implemented with next
generation technologies, confirm that these bands should be structured to enable their efficient and
intensive use for these and future spectrum-based services and technologies.

Action by the Commission on January 6, 2000 by Report and Order (FCC 00-5). Chairman Kennard,
Commissioners Ness, Powell and Tristani with Commissioner Furchtgott-Roth approving in part and
dissenting in part, and Commissioners Ness and Furchtgott-Roth issuing separate statements.